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DECISION No. 40/2003/QD-TTg OF MARCH 21, 2003 ADJUSTING A NUMBER OF CONTENTS OF THE PLANNING ON VIETNAM'S ELECTRICITY DEVELOPMENT IN THE 2001-2010 PERIOD, WITH PROSPECT TILL 2020 TAKEN INTO ACCOUNT

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of December 25, 2001;

At the proposal of the Ministry of Industry (Official Dispatch No. 4505/CV-KHDT of November 13, 2003), the appraisal opinions of the State Council for Evaluation of Investment Projects (Official Dispatch No. 19/TDNN of January 29, 2003) and the comments of the concerned ministries and branches on the adjustment of the planning on Vietnam's electricity development in the 2001-2010 period, with prospect till 2020 taken into account,

DECIDES:

Article 1.- To adjust a number of contents of the planning on Vietnam's electricity development in the 2001-2010 period, with prospect till 2020 taken into account (called the adjusted electricity planning V for short) as follows:

1. On load demand: In 2005: 48.5-53 billion kWh; in 2010: 88.5-93 billion kWh.

2. On the development of power sources:

- The Ministry of Industry shall direct Vietnam Electricity Corporation and other concerned investors to speed up the construction tempo of power source and grid projects; to upgrade the existing power sources; to renovate operation and management modes thus meeting the increasing demand for load in a qualitative, efficient and thrifty manner.

- The list of power source projects to be invested by Vietnam Electricity Corporation is specified in Appendix 1 (enclosed herewith).

- The list of power source projects to be invested by enterprises not belonging to Vietnam Electricity Corporation is specified in Appendix 2 (enclosed herewith).

To encourage enterprises of all economic sectors to make investment in coal-fired power projects in Quang Ninh province and hydroelectric power projects of a capacity of around 100 MW in the form of joint-stock companies where State-run corporations hold dominant shares.

- The Ministry of Industry shall soon promulgate electricity-purchase prices and concretely announce the list of projects for enterprises not belonging to Vietnam Electricity Corporation to participate therein.

The capacities, locations and durations for construction of power source projects shall be decided by competent authorities before the investors approve the feasibility study report of each specific project.

3. On the development of power grids:

a) To speed up the construction of projects on high-voltage power grids, concretely the projects on the 500 kV power lines of Phu My-Nha Be-Phu Lam; Pleiku-Phu Lam; and Pleiku-Doc Soi-Da Nang-Ha Tinh-Thuong Tin according to the set schedules.

b) The projects on power grids shall be adjusted (see the list in Appendix 3).

4. On investment capital sources:

a) Vietnam Electricity Corporation may mobilize all capital sources for investment in projects on power sources and power grids according to the mechanism of self-borrowing and self-repaying (borrowing ODA capital, credit capital at home and abroad, borrowing export credit from equipment suppliers, borrowing capital in equipment and making repayment in goods, issuing bonds and capital-contributing shares) while still complying with the mechanism whereby the central bodies, localities, State and people jointly develop rural power grids.

b) To encourage domestic and foreign investors to participate in the construction of power source and power distribution projects in various investment forms: independent power plants (IPP), build-transfer (BT) contracts, build-operate-transfer (BOT) contracts, joint ventures or joint-stock companies.

5. On a number of mechanisms and policies:

a) To accelerate the implementation tempo of projects, to allow Vietnam Electricity Corporation to skip the step of elaborating pre-feasibility study reports of power source and grid projects inscribed in the Appendices to this Decision.

b) To allow Vietnam Electricity Corporation to appoint domestic consultancy agencies to act as main consultants for power source and grid projects. For complicated issues, it may sign contracts to hire foreign consultancy agencies.

c) The Ministry of Industry shall coordinate with the Ministry of Finance in studying and submitting to the Prime Minister mechanisms of providing partial budget capital support for investment in power sources and grids in service of economic and social development in remote and deep-lying areas; allocating capital for on-the-spot energy sources in areas where the national power grids do not exist; and separating Vietnam Electricity Corporation's public-utility activities from its production and business activities.

d) Commercial banks shall be allowed to provide Vietnam Electricity Corporation with a loan exceeding 15% of their own capital for investment in electricity projects if deeming that they are efficient and their feasibility study reports have been approved by competent authorities.

e) The provincial/municipal People's Committees shall have to closely coordinate with the Ministry of Industry, Vietnam Electricity Corporation and other investors in settling the compensation for ground clearance and population resettlement related to power source and grid projects in accordance with schedules approved by competence authorities.

Article 2.- This Decision takes effect 15 days after its signing. Other contents shall continue to comply with Decision No. 95/2001/QD-TTg of June 22, 2001 of the Prime Minister

Article 3.- The Minister of Industry, the concerned ministers, the heads of the concerned branches, the presidents of the provincial/municipal People's Committees and the Managing Board and the directorate of Vietnam Electricity Corporation shall have to implement this Decision.

Prime Minister
PHAN VAN KHAI

APPENDIX 1

POWER SOURCE PROJECTS TO BE INVESTED BY VIETNAM ELECTRICITY CORPORATION

(Issued together with the Prime Minister's Decision No. 40/2003/QD-TTg of March 21, 2003)

Ordinal number

Names of plants

Capacity - MW

Year of operation

I. Power sources expected to operate in the 2003-2005 period

1.

Steam drum of Phu My 2.1

160

2003

2.

Steam drum of expanded Phu My 2.1

160

2005

3.

Mixed gas turbines of Phu My 4

450

2003 - 2004

4.

Expanded Uong Bi coal-fired thermal power plant

300

2005

5.

Se San 3 hydroelectric power plant

273

2005 - 2006

II. Power sources expected to operate in the 2006-2010 period

6.

Tuyen Quang hydroelectric power plant

342

2006 - 2007

7.

Dai Ninh hydroelectric power plant

2x150

2007 - 2008

8.

A Vuong 1 hydroelectric power plant

170

2007

9.

Expanded Thac Mo hydroelectric power plant

75

2008

10.

Quang Tri hydroelectric power plant

70

2007

11.

Dak Rinh hydroelectric power plant

100

2007

12.

PleiKrong hydroelectric power plant

110

2008

13.

Ban La (Nghe An 1) hydroelectric power plant

300

2008

14.

Dong Nai 3 - 4 hydroelectric power plant

510

2009 - 2010

15.

Tranh river 2 hydroelectric power plant

120

2009

16.

Con river 2 hydroelectric power plant

70

2010

17.

Ba Ha river hydroelectric power plant

250

2010 - 2011

18.

Upper Kon Tum hydroelectric power plant

220

2010 - 2011

19.

Buon Kuop hydroelectric power plant

280

2008 - 2009

20.

Ban Chat hydroelectric power plant

200

2010

21.

An Khe + Ka Nak hydroelectric power plant

163

2009

22.

Buon Tua Srah

85

2009

23.

Sre Pok 3 hydroelectric power plant

180

2009 - 2010

24.

Se San 4 hydroelectric power plant

330

After 2010

25.

O Mon I oil-gas thermoelectric power plant

600

2006 - 2007

26.

Expanded Ninh Binh coal-fired thermal power plant

300

2007

27.

Unit 2 of expanded Uong Bi coal-fired thermal power plant

300

2008

28.

Nhon Trach thermoelectric power plant

600 (*)

2007 - 2008

29.

Nghi Son thermoelectric power plant

600

2010 - 2011

30.

Hai Phong thermoelectric power plant

600 (**)

2006 - 2007

31.

Quang Ninh thermoelectric power plant

600

2008 - 2009

32.

O Mon II thermoelectric power plant (according to the technology of high-speed mixed gas turbines)

750

2010 - 2011

(*) In the first phrase: 600 MW.

(**) In the first phrase: According to coal-firing technology.

APPENDIX 2

POWER SOURCE PROJECTS TO BE INVESTED BY ENTERPRISES NOT BELONGING TO VIETNAM ELECTRICITY CORPORATION

(Issued together with the Prime Minister's Decision No. 40/2003/QD-TTg of March 21, 2003)

Ordinal number

Names of plants

Capacity - MW

Years of completion

I. Power sources expected to be operate in the 2003-2005 period

1.

Can Don hydroelectric power plant

72

2003

2.

Phu My 3 power plant

720

2003

3.

Phu My 2.2 power plant

720

2004

4.

Na Duong thermoelectric power plant

100

2004

5.

Cao Ngan thermoelectric power plant

100

2005

Total

1,712

II. Power sources expected to operate in the 2006-2010 period

1.

Cua Dat hydroelectric power plant

97

2008

2.

Se San 3A hydroelectric power plant

100

2006

3.

Bac Binh hydroelectric power plant

35

2006

4.

Srok Phu Mieng hydroelectric power plant

54

2006

5.

Ngoi Bo hydroelectric power plant

20

2006

6.

Ngoi Phat hydroelectric power plant

35

2006

7.

Nhan Hac and Ban Coc hydroelectric power plant

32

2006

8.

La Ngau hydroelectric power plant

38

2006

9.

Binh Dien hydroelectric power plant

20

2006

10.

Tra Som hydroelectric power plant

24

2006

11.

Eak Rong Rou hydroelectric power plant

34

2006

12.

Bao Loc hydroelectric power plant

23

2006

13.

Dai Nga hydroelectric power plant

20

2006

14.

Dak Rti'h hydroelectric power plant

72

2006

15.

Thac Muoi hydroelectric power plant

53

2007

16.

Na Le hydroelectric power plant

90

2007

17.

Coc San - Chu Linh hydroelectric power plant

70

2007

18.

Dan Sach hydroelectric power plant

6

2007

19.

Da Dang Dachamo hydroelectric power plant

16

2007

20.

Nam Mu hydroelectric power plant

11

2008

21.

Hieu river hydroelectric power plant

5

2008

22.

Eak Rong Hnang hydroelectric power plant

65

2008

23.

Iagrai hydroelectric power plant

9

2008

24.

Ca Mau thermoelectric power plant

720

2006

25.

Cam Pha thermoelectric power plant

300

2006

APPENDIX 3

POWER GRID DEVELOPMENT IN THE 2002-2010 PERIOD

TABLE 3.1. 500 KV POWER LINES

(Issued together with the Prime Minister's Decision No. 40/2003/QD-TTg of March 21, 2003)

Names of projects

Number of circuits x km

Length

Notes

Projects to be built in the 2002-2005 period

Pleiku - Phu Lam (circuit 2)

1 x 547

547

2003

Phu My - Nha Be

2 x 49

98

2003

Nha Be - Phu Lam

1 x 16

16

2003

Nha Be - O Mon

1 x 180

180

2005

Pleiku - Doc Soi - Da Nang

1 x 300

300

2004

Da Nang - Ha Tinh

1 x 390

390

Second quarter of 2005

Ha Tinh - Thuong Tin

1 x 335

335

2005 – 2006

Feeder to Nho Quan 500 KV station

2 x 30

60

2005

Total

1,926

Projects to be built in the 2006-2010 period

Feeder to Dong Nai 3&4

2 x 20

40

2008 - 2009

Quang Ninh - Thuong Tin

1 x 110

110

2007 - 2008

Phu Lam - O Mon

1 x 170

170

2006 - 2007

Phu My - Nhon Trach

1 x 30

30

2008 - 2009

Song May - Nhon Trach

1 x 20

20

2008 - 2009

Song May - Tan Dinh

1 x 30

30

2008 - 2009

Total

400

TABLE 3.2. 500 KV TRANSFORMER STATIONS

Ordinal number

Names of projects

Number of transformer x MVA

Capacity-MVA

Notes

Projects to be built in the 2002 - 2005 period

1

Nha Be

2 x 600

1,200

2004

2

Phu My

2 x 450

900

2003

3

Da Nang

1 x 450

450

Transformer 2 - 2004

4

O Mon

1 x 450

450

2005 - 2006

5

Tan Dinh

1 x 450

450

2005 - 2006

6

Thuong Tin

1 x 450

450

2005 - 2006

7

Nho Quan

1 x 450

450

2005 - 2006

Total

4,350

Projects to be built in the 2006 – 2010 period

1

Thuong Tin

1 x 450

450

Transformer 2

(2007 - 2008)

2

Tan Dinh

1 x 450

450

Transformer 2

3

Doc Soi

2 x 450

900

2006 - 2008

4

Di Linh

1 x 450

450

In synchronicity with Dai Ninh

5

Nhon Trach

1 x 450

450

2008

6

Quang Ninh

1 x 450

450

2007 - 2009

7

Song May

1 x 600

600

2008 - 2009

8

O Mon

1 x 450

450

Transformer 2

Total

4,200

Gross total

8,550

TABLE 3.3. 220 KV POWER LINES

Ordinal number

Names of projects

Number of circuits x km

Length

Notes

Projects expected to operate in 2002 - 2005

1

Northern region

Nam Dinh - Thai Binh

1 x 30

30

2-circuit poles

2

Thai Binh - Hai Phong

2 x 45

90

2004

3

Bac Giang - Thai Nguyen

1 x 55

55

2003

4

Viet Tri - Son La

1 x 190

190

Operating 110 kV power lines

5

Dong Hoa - Dinh Vu

1 x 17

17

2005

6

Ha Dong - Thanh Cong

2 x 10

20

2005 - 2006

7

Mai Dong - An Duong - Chem

2 x 18

36

2005 - 2006

8

Viet Tri - Yen Bai

2 x 75

150

2004 - 2005

9

Uong Bi - Trang Bach

2 x 19

38

2005

10

Central region

Hoa Khanh - Hue

1 x 80

80

Hanging circuit 2

11

Da Nang - Hoa Khanh

1 x 12

12

‘’

12

Da Nhim - Nha Trang

1 x 140

140

2003 - 2004

13

Dung Quat - Doc Soi

2 x 10

20

2005 - 2006

14

Se San 3 - Pleiku

2 x 35

70

2005 - 2006

15

Hue - Dong Hoi

1 x 170

170

2005 - 2006

16

Da Nang - Doc Soi

1 x 100

100

Stretching lines of circuit 2

17

Southern region

Nha Be - Tao Dan

2 x 10

20

Cable + DZK

18

Nha Be - Cat Lai

2 x 10

20

2005

19

Phu My - Cat Lai

2 x 35

70

2002 - 2003

20

Long Binh - Thu Duc

1 x 16

16

Circuit 2

21

Cat Lai - Thu Duc

2 x 10

20

2003

22

Ba Ria - Vung Tau

2 x 15

30

2005

23

Dai Ninh - Di Linh

2 x 39

78

In synchronicity with Dai Ninh

24

Bao Loc - Tan Rai

2 x 20

40

2005

25

Tan Dinh - Binh Hoa

2 x 18

36

2004 - 2005

26

Thu Duc - Hoc Mon

1 x 16

16

Circuit 2

27

Tan Dinh - Phuoc Long

2 x 70

140

2004 - 2005

28

Tan Dinh - Trang Bang

1 x 50

50

2-circuit poles

29

Kien Luong - Chau Doc

1 x 75

75

2005

30

O Mon - Tra Noc

2 x 15

30

2005

31

Ca Mau - O Mon (or Rach Gia)

2 x 150

300

2005 - 2006

32

Ca Mau - Bac Lieu

1 x 70

70

2005

33

O Mon - Thot Not

2 x 28

56

2003 - 2004

34

Thot Not - Chau Doc

2 x 70

140

2003

Total

2,425

Projects to be built in the 2006 - 2010 period

1

Northern region

Na Hang - Yen Bai

2 x 160

320

2

Feeder to Nho Quan

4 x 4

16

3

Hai Phong thermoelectric power plant- Dinh Vu

2 x 17

34

4

Hai Phong thermoelectric power plant - Vat Cach

2 x 19

38

5

Feeder to Hai Duong - Hai Duong

2 x 15

30

6

Ha Tinh - Thach Khe

2 x 9

18

7

Van Tri - Soc Son

2 x 25

50

8

Van Tri - Chem

2 x 10

20

9

Huoi Quang - Son La

2 x 20

40

10

Thanh Hoa - Ha Tinh

1 x 215

215

11

Ban La - Vinh

2 x 150

300

12

Quang.Ninh thermoelectric power plant - Hoanh Bo

2 x 15

30

13

Quang.Ninh thermoelectric power plant - Cam Pha thermoelectric power plant

2 x 30

60

14

Uong Bi - Trang Bach

2 x 20

40

15

Central region

Doc Soi - Quang Ngai

1 x 40

40

16

Lower Ba river- Tuy Hoa

2 x 40

80

17

Quy Nhon - Tuy Hoa

1 x 95

95

18

Tuy Hoa - Nha Trang

1 x 110

110

19

Srepok 3 - Buon Kuop

1 x 20

20

20

Buon Kuop - KrongBuk

2 x 45

90

21

Kon Tum - Pleiku

2 x 70

140

22

A Vuong - Song Con - Da Nang

2 x 70

140

23

Dung Quat - Song Tranh 2

2 x 75

150

24

Se San 4 - Pleiku

2 x 43

86

25

Se San 3 - Se San 3A

1 x 10

10

26

Southern region

Nha Be - Cat Lai

2 x 10

20

27

Ham Thuan - Phan Thiet

1 x 60

60

28

Song May - Long Binh

2 x 30

60

29

Tra Noc - Soc Trang

1 x 75

75

30

Bac Lieu - Soc Trang

1 x 53

53

31

Feeder to Thap Muoi

2 x 10

20

32

Tan Dinh - Trang Bang

1 x 50

50

Stretching lines of circuit 2

33

Nhon Trach - Cat Lai

2 x 10

20

34

Tan Dinh - Song Be industrial park

2 x 12

24

35

My Tho - Ben Tre

1 x 35

35

36

Da Nhim - Da Lat

1 x 50

50

Total

2,639

TABLE 3.4. 220 KV TRANSFORMER STATIONS

Ordinal number

Region

Names of projects

Number of transformer x MVA

Capacity -MVA

Notes

Projects to be built in the 2002 - 2005 period

1

Northern region

Dinh Vu

1 x 125

125

2005

2

An Duong

1 x 250

250

2005

3

Mai Dong

2 x 250

500

2005

4

Bac Ninh

1 x 125

125

2005

5

Hoanh Bo

1 x 125

125

Transformer 2

6

Nghi Son

1 x 125

125

2003

7

Pho Noi

1 x 125

125

Transformer 2

8

Soc Son

1 x 125

125

Transformer 2

9

Thai Binh

1 x 125

125

2002 - 2003

10

Thai Nguyen

1 x 125

125

Transformer 2

11

Thanh Cong

1 x 250

250

2005

12

Uong Bi

1 x 125

125

2005

13

Viet Tri

1 x 125

125

Transformer 2

14

Xuan Mai

2 x 125

250

2002 - 2005

15

Yen Bai

1 x 125

125

2004 - 2005

16

Central region

Doc Soi

1 x 125

125

Transformer 2

17

Dong Hoi

1 x 125

125

Replacing transformers

18

Dung Quat

1 x 125

125

19

Hoa Khanh

2 x 125

250

2003 - 2005

20

KrongBuk

1 x 63

63

Transformer 2

21

Nha Trang

1 x 125

125

‘’

22

Southern region

Dai Ninh

1 x 63

63

In synchronicity with Dai Ninh

23

Binh Hoa

1 x 250

250

Transformer 2

24

Ba Ria

1 x 125

125

25

Bac Lieu

1 x 125

125

26

Cat Lai

2 x 250

500

2003

27

Ca Mau

1 x 125

125

2005 - 2006

28

Chau Doc

1 x 125

125

2004

29

Kien Luong

1 x 125

125

30

Long Thanh

1 x 250

250

Transformer 2

31

My Tho

1 x 125

125

32

Southern Sai Gon

1 x 250

250

2005

33

Phuoc Long

2 x 125

250

2004 - 2005

34

Tan Dinh

1 x 250

250

35

Tan Rai

2 x 125

250

Aluminum treatment

36

Tao Dan

2 x 250

500

2003 - 2004

37

Thot Not

2 x 125

250

38

Thu Duc

2 x 250

500

Replacing transformers- 2003

39

Trang Bang

1 x 125

125

40

Tri An

1 x 63

63

Transformer 2

41

Vung Tau

1 x 125

125

42

Vinh Long

1 x 125

125

Transformer 2

Total

7,939

Projects to be built in the 2006 - 2010 period

1

Northern region

Dinh Vu

1 x 125

125

Transformer 2

2

Dong Hoa

2 x 250

500

Replacing transformers

3

An Duong

1 x 250

250

Transformer 2

4

Bac Giang

1 x 125

125

Transformer 2

5

Hai Duong

1 x 125

125

6

Hai Phong thermoelectric power plant

1 x 125

125

7

Quang Ninh thermoelectric power plant

2 x 250

500

8

Na Hang

2 x 63

126

2007 - 2008

9

Nam Dinh

1 x 125

125

Transformer 2

10

Nghi Son

1 x 125

125

Transformer 2

11

Phu Ly

1 x 125

125

12

Son Tay

1 x 125

125

13

Son La

1 x 125

125

14

Thai Binh

1 x 125

125

Transformer 2

15

Thanh Cong

1 x 250

250

Transformer 2

16

Trang Bach

1 x 125

125

Transformer 2

17

Van Tri

2 x 250

500

2006

18

Vat Cach

1 x 125

125

Transformer 2

19

Xuan Mai

1 x 125

125

Transformer 2

20

Central region

Dung Quat

1 x 125

125

Transformer 2

21

Hue

1 x 125

125

Transformer 2

22

Ba Don

1 x 63

63

23

Dong Hoi

1 x 125

125

Replacing transformers

24

KrongBuk

1 x 125

125

Replacing transformers

25

Quang Ngai

1 x 125

125

26

Quy Nhon

1 x 125

125

Transformer 2

27

Tam Ky

1 x 125

125

28

Tuy Hoa (Phu Yen)

1 x 125

125

29

Southern region

Ben Tre

1 x 125

125

30

Ca Mau

1 x 125

125

Transformer 2

31

Cao Lanh (Thap Muoi)

1 x 125

125

32

Chau Doc

1 x 125

125

Transformer 2

33

Song Be industrial park

1 x 125

125

34

Kien Luong

1 x 125

125

Transformer 2

35

Long An

2 x 125

250

36

My Tho

1 x 125

125

Transformer 2

37

South Sai Gon

1 x 250

250

Transformer 2

38

Phan Thiet

1 x 125

125

39

Binh Phuoc ( HCM city)

2 x 250

500

40

Soc Trang

1 x 125

125

41

Song May

1 x 125

125

42

Tan Binh

2 x 250

500

43

Vung Tau

1 x 125

125

Transformer 2

Total

7,689